Demystifying Directors & Officers Coverage

Directors & Officers (D&O) Liability insurance helps cover defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization's board of directors and/or officers. These types of claims have become increasingly common and directors and officers themselves could be held personally liable. To attract and retain qualified executives and board members it's crucial to have Travelers Directors & Officers Liability insurance.

Management liability threats can be mysterious for business leaders in private companies. Few understand the breadth of liabilities, their personal risk, and the potential remedies.

Why you and your organization need protection

All organizations, whether publicly or privately held, and the people who lead them, are vulnerable to a multitude of Directors & Officers (D&O) exposures. These can include securities litigation, regulatory actions, allegations of misrepresentation and other breaches of fiduciary duties. Mergers and acquisitions, signs of financial weakness and perceived conflicts of interest can all be triggers for shareholders, competitors, customers, employees and government entities to make devastating claims against directors and officers.

Directors and Officers claims have become increasingly common. Directors and officers themselves can be held personally liable for these claims. To attract and retain qualified executives and board members, it’s crucial to have a comprehensive insurance program in place. Seventy percent or more of all directors and officers have inquired about the amount and scope of their organization's’ D&O coverage. 

D&O Coverage from Travelers Casualty & Surety Company of America and Minneapolis St. Paul Agency has a broad definition of claims and covers the defense costs, settlements and judgments associated with claims. Our D&O policies not only help provide protection for the assets of the organization and the personal assets of its directors and officers, but also help protect the personal assets of a director or officer’s spouse, domestic partner or the deceased director or officer’s estate.

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